Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Record Fonterra payout means ‘good times’ for all

Media Release

FREEPHONE 0800 327 646 I WEBSITE WWW.FEDFARM.ORG.NZ 

27 February 2014

Record Fonterra payout means ‘good times’ for all

While the dry summer is starting to bite in parts of Waikato and Northland, Fonterra has delivered excellent news for New Zealand by upping its 2013/14 forecast Farmgate Milk Price to a record $8.65 per kilogram of Milk Solids (kg/MS).

“You can say New Zealand is truly a land of milk and honey with the two being at record highs,” says Willy Leferink, Federated Farmers Dairy chairperson, speaking from Federated Farmers Dairy Council in Wellington.

“I also think this will put a huge smile on Minister Guy’s face when he speaks to us later this morning.  If the forecast sticks this represents ‘good times’ for all Kiwis.

“In 2010, the NZIER said a $1 kg/MS rise in Fonterra's payout makes every New Zealander nearly $300 better off.  Given this latest 35 cent kg/MS uplift, every New Zealander could be $100 better off as a result of what we do.

“This forecast payout is now in the all-time record category too. 

“The current record remains a $7.67 kg/MS payout back in 2007/8, which, when adjusted for inflation, comes in at $8.51 kg/MS today.

“A forecast of $8.65 kg/MS, with the ten cent kg/MS dividend on top, means potential cash in hand for a fully shared up Fonterra farmer-shareholder of $8.75 kg/MS.  Most welcome is the 25 cents kg/MS increase in the monthly Advance Rate schedule from March to June.

“Yet we seriously caution farmers from counting their milk solids when sitting at the table, there’s plenty of time for counting when the season’s done.

“I am pleased to say that dairy farmers are heeding Federated Farmers message despite a series of positive forecasts, excepting the previously announced hair cut to the dividend.

“If you are a car dealer or rural agent I wouldn’t be rubbing my hands just yet.  In the three months to January 2014, the Real Estate Institute of New Zealand’s Dairy Farm Price Index actually fell by 2.9 percent. 

“In a key area like Canterbury, the REINZ noted that the dairy farm market had plateaued and demand for very good properties was being driven mainly by local buyers.

“It tells me there’s a realisation that forecasts are just that and in the case of the North Island, a great 2013/14 is needed to make up for a lousy 2012/13 drought affected season.  The climb of dairy commodities behind this revised forecast can be traced to less than optimal conditions facing our competitors abroad

“That’s why I am confident farmers are on conservative budgets and if it does stick, then they will prioritise debt retirement and productive investment, especially on environmental works. 

“Federated Farmers now anticipates the other dairy companies and cooperatives will be revising their payout forecasts to near match, if not better, Fonterra,” Mr Leferink concluded.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Starts Talks On Tougher Rules For Property Speculators

The Reserve Bank of New Zealand is stepping up preparations to restrict lending to residential property investors as it watches house prices, particularly in Auckland, continue to rise strongly. More>>

ALSO:

Research: ‘Ageing Well’ Science Challenge Launched

Science and Innovation Minister Steven Joyce today launched the Ageing Well National Science Challenge, confirming initial funding of $14.6 million. More>>

ALSO:

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news